CHAPTER 22. ECONOMIC IMPROVEMENT DISTRICTS
IC 36-7-22
Chapter 22. Economic Improvement Districts
IC 36-7-22-1
Application of chapter
Sec. 1. This chapter applies to all units except townships.
As added by P.L.195-1988, SEC.1.
IC 36-7-22-2
"Board" defined
Sec. 2. As used in this chapter, "board" refers to an economicimprovement board established under section 11 of this chapter.
As added by P.L.195-1988, SEC.1.
IC 36-7-22-3
"Economic improvement project" defined
Sec. 3. As used in this chapter, "economic improvement project"means the following:
(1) Planning or managing development or improvementactivities.
(2) Designing, landscaping, beautifying, constructing, ormaintaining public areas, public improvements, or public ways(including designing, constructing, or maintaining lighting,infrastructure, utility facilities, improvements, and equipment,water facilities, improvements, and equipment, sewagefacilities, improvements, and equipment, streets, or sidewalksfor a public area or public way).
(3) Promoting commercial activity or public events.
(4) Supporting business recruitment and development.
(5) Providing security for public areas.
(6) Acquiring, constructing, or maintaining parking facilities.
(7) Constructing, rehabilitating, or repairing residentialproperty, including improvements related to the habitability ofthe residential property.
As added by P.L.195-1988, SEC.1. Amended by P.L.114-1989,SEC.12; P.L.131-2008, SEC.54.
IC 36-7-22-4
Petition; filing; contents
Sec. 4. A petition for the establishment of an economicimprovement district may be filed with the legislative body of theunit. The petition must include the following information:
(1) The boundaries of the proposed district, including theboundaries of any zones to be established under section 5(b) ofthis chapter.
(2) The name and address of each parcel and owner of landwithin the proposed district and a description of the existingland use and zoning classification of each parcel.
(3) A detailed description of the economic improvementprojects to be carried out within the proposed district, the
estimated cost of these projects, and the benefits to accrue tothe property owners within the district.
(4) A plan for the application of assessment revenue to the costof the economic improvement projects within the district.
(5) A proposed formula for determining the percentage of thetotal benefit to be received by each parcel of real propertywithin the district, in the manner provided by section 5 of thischapter.
(6) The number of years in which assessments will be levied.
(7) A proposed list of members for the board.
As added by P.L.195-1988, SEC.1.
IC 36-7-22-5
Apportionment of benefits
Sec. 5. (a) The benefits accruing to parcels of real property withinan economic improvement district may be apportioned among thoseparcels on any basis reasonably representative of the diffusion ofbenefits from the economic improvement project, including thefollowing:
(1) Proximity of the parcel to the project.
(2) Accessibility of the parcel to the project.
(3) True cash value of the parcel.
(4) True cash value of any improvement on the parcel.
(5) Age of any improvement on the parcel.
(6) Other similar factors.
The apportionment of benefits under this subsection may be adjustedby zone or land use as provided in subsections (b) and (c).
(b) If the benefit of the economic development project varies fromone (1) area to another within the economic improvement district, upto three (3) zones may be established within the district to delineatethe approximate difference in beneficial impact, and benefits may beapportioned accordingly.
(c) In order to encourage the retention or development of variousland uses within the district, assessments may be adjusted accordingto the zoning classification of the property.
As added by P.L.195-1988, SEC.1.
IC 36-7-22-6
Hearing; notice; questions heard
Sec. 6. (a) After receipt of a petition under section 4 of thischapter, the legislative body shall, in the manner provided byIC 5-3-1, publish notice of a hearing on the proposed economicimprovement district. The legislative body shall mail a copy of thenotice to each owner of real property within the proposed economicimprovement district. The notice must include the boundaries of theproposed district, a description of the proposed projects, and theproposed formula for determining the percentage of the total benefitto be received by each parcel of property.
(b) At the public hearing under subsection (a), the legislative bodyshall hear all owners of real property in the proposed district (who
appear and request to be heard) upon the questions of:
(1) the sufficiency of the notice;
(2) whether the proposed economic improvement projects areof public utility and benefit;
(3) whether the formula to be used for the assessment of specialbenefits is appropriate; and
(4) whether the district contains all, or more or less than all, ofthe property specially benefited by the proposed project.
As added by P.L.195-1988, SEC.1.
IC 36-7-22-7
Ordinance; establishing district
Sec. 7. (a) After conducting a hearing on the proposed economicimprovement district, the legislative body may adopt an ordinanceestablishing the economic improvement district if it determines that:
(1) the petition meets the requirements of this section andsections 4 and 5 of this chapter;
(2) the economic improvement projects to be undertaken in thedistrict will provide special benefits to property owners in thedistrict and will be of public utility and benefit;
(3) the benefits provided by the project will be new benefits thatdo not replace benefits existing before the establishment of thedistrict; and
(4) the formula to be used for the assessment of benefits isappropriate.
(b) The legislative body may adopt the ordinance only if itdetermines that the petition has been signed by:
(1) a majority of the owners of real property within theproposed district; and
(2) the owners of real property constituting more than fiftypercent (50%) of the assessed valuation in the proposed district.
(c) The signature of a person whose property would be exemptfrom assessments under the ordinance may not be considered indetermining whether the requirements of subsection (b) are met. Inaddition, the assessed valuation of any property that would beexempt from assessment under the ordinance may not be consideredin determining the total assessed valuation in the proposed district.
As added by P.L.195-1988, SEC.1. Amended by P.L.25-1993,SEC.12; P.L.113-2010, SEC.135.
IC 36-7-22-8
Ordinance; amending or modifying petition proposals
Sec. 8. An ordinance adopted under section 7 of this chapter mayamend or modify the proposals contained in the petition submittedunder section 4 of this chapter. However, if the ordinance willincrease the area of the district beyond the area described in thepetition, the ordinance may not be adopted until notice of this facthas been published in the manner provided by IC 5-3-1 and mailedto each owner of real property in the additional area proposed to beincluded in the district.As added by P.L.195-1988, SEC.1.
IC 36-7-22-9
Ordinance; repeal or amendment
Sec. 9. An ordinance adopted under section 7 of this chapter maybe repealed or amended only after notice of the proposed repeal oramendment is published and mailed in the manner provided bysection 6 of this chapter.
As added by P.L.195-1988, SEC.1.
IC 36-7-22-10
Ordinance; exemption from special assessments
Sec. 10. An ordinance adopted under section 7 of this chapter mayprovide that businesses established within the district after thecreation of the district are exempt from special assessments for aperiod not to exceed one (1) year.
As added by P.L.195-1988, SEC.1.
IC 36-7-22-11
Ordinance; economic improvement board
Sec. 11. An ordinance adopted under section 7 of this chaptermust establish an economic improvement board to be appointed bythe legislative body. The board must have at least three (3) members,and a majority of the board members must own real property withinthe district. However, if there is only one (1) property owner withina district formed before March 1, 2010, the legislative body shallappoint one (1) member to the economic improvement board whoowns real property within the district and not more than two (2) othermembers who are not required to own real property within thedistrict. After, February 28, 2010, a district formed under this chaptermust have at least one (1) parcel of real property that is not owned byan owner of other parcels of real property in the district.
As added by P.L.195-1988, SEC.1. Amended by P.L.113-2010,SEC.136.
IC 36-7-22-12
Assessments; percentage of benefit; notice; hearing; decision; lien;certification; economic improvement districts
Sec. 12. (a) The board shall use the formula approved by thelegislative body under section 7(a)(4) of this chapter to determine thepercentage of benefit to be received by each parcel of real propertywithin the economic improvement district. The board shall apply thepercentage determined for each parcel to the total amount that is tobe defrayed by special assessment and determine the specialassessment for each parcel.
(b) Promptly after determining the proposed assessment for eachparcel, the board shall mail notice to each owner of property to beassessed. This notice must:
(1) set forth the amount of the proposed special assessment;
(2) state that the proposed special assessment on each parcel of
real property in the economic improvement district is on fileand can be seen in the board's office;
(3) state the time and place where written remonstrances againstthe special assessment may be filed;
(4) set forth the time and place where the board will hear anyowner of assessed real property who has filed a remonstrancebefore the hearing date; and
(5) state that the board, after hearing evidence, may increase ordecrease, or leave unchanged, the special assessment on anyparcel.
(c) The notices must be deposited in the mail twenty (20) daysbefore the hearing date. The notices to the owners must be addressedas the names and addresses appear on the tax duplicates and therecords of the county auditor.
(d) At the time fixed in the notice, the board shall hear any ownerof assessed real property who has filed a written remonstrance beforethe date of the hearing. The hearing may be continued from time totime as long as is necessary to hear the owners.
(e) The board shall render its decision by increasing, decreasing,or confirming each special assessment by setting opposite each name,parcel, and proposed assessment, the amount of the assessment asdetermined by the board. However, if the total of the specialassessments exceeds the amount needed, the board shall make aprorated reduction in each special assessment.
(f) Except as provided in section 13 of this chapter, the signing ofthe special assessment schedule by a majority of the members of theboard and the delivery of the schedule to the county auditorconstitute a final and conclusive determination of the benefits thatare assessed.
(g) Each special assessment is a lien on the real property that isassessed, second only to ad valorem property taxes levied on thatproperty.
(h) The board shall certify to the county auditor the schedule ofspecial assessments of benefits. For purposes of providingsubstantiation of the deductibility of a special assessment for federaladjusted gross income tax purposes under Section 164 of the InternalRevenue Code, the board shall, to the extent practicable, supplementthe schedule of special assessments provided to the county auditorwith a statement that identifies the part of each special assessmentthat is allocable to interest, maintenance, and repair charges. If theboard provides the county auditor with the statement, the countyauditor shall show, on the tax statement, the part of the specialassessment that is for interest and maintenance and repair itemsseparately from the remainder of the special assessment.
As added by P.L.195-1988, SEC.1. Amended by P.L.131-2008,SEC.55; P.L.1-2009, SEC.166; P.L.113-2010, SEC.137.
IC 36-7-22-13
Ordinance or assessment schedule; action contesting validity
Sec. 13. (a) Any owner of real property in an economic
improvement district may file an action contesting the validity of:
(1) the ordinance adopted under section 7 of this chapter; or
(2) the assessment schedule adopted under section 12 of thischapter.
(b) An action under this section must be filed:
(1) in the circuit or superior court of the county in which theeconomic improvement district is located; and
(2) within thirty (30) days after adoption of the ordinance orassessment schedule.
As added by P.L.195-1988, SEC.1.
IC 36-7-22-14
Certification of final scheduled assessments
Sec. 14. Within thirty (30) days after the county auditor receivesthe certification of final scheduled assessments for the completion ofthe economic improvement project, the auditor shall deliver a copyof the certificate to the county treasurer. Each year, the treasurershall add the full annual assessment due in that year to the taxstatements of the person owning the property affected by theassessment, designating it in a manner distinct from general taxes.
As added by P.L.195-1988, SEC.1.
IC 36-7-22-15
Assessments; payment to board
Sec. 15. Assessments collected under this chapter shall be paid tothe board.
As added by P.L.195-1988, SEC.1.
IC 36-7-22-16
Economic improvement fund
Sec. 16. (a) The board shall establish an economic improvementfund and shall deposit in this fund all assessments received under thischapter and any other amounts received by the board.
(b) Money in the economic improvement fund may be used onlyfor the purposes specified in the ordinance establishing the economicimprovement district. Any money earned from investment of moneyin the fund becomes a part of the fund.
As added by P.L.195-1988, SEC.1.
IC 36-7-22-17
Budget
Sec. 17. (a) Before November 1 of each year, the board shallprepare and submit to the fiscal body a budget for the followingcalendar year governing the board's projected expenditures from theeconomic improvement fund. The fiscal body may approve, modify,or reject the proposed budget.
(b) The board may make an expenditure from the economicimprovement fund only if the expenditure was approved by the fiscalbody in its review of the board's budget or was otherwise approvedby the fiscal body.As added by P.L.195-1988, SEC.1.
IC 36-7-22-18
Purchasing materials or equipment; contracting for public works
Sec. 18. The board must comply with IC 36-1-12 whencontracting for public works.
As added by P.L.195-1988, SEC.1. Amended by P.L.1-2010,SEC.150.
IC 36-7-22-19
Lease or contractual agreements
Sec. 19. The board may enter into lease or contractual agreements,or both, with governmental, not-for-profit, or other private entitiesfor the purpose of carrying out economic improvement projects.
As added by P.L.195-1988, SEC.1.
IC 36-7-22-20
Disposal of assets and liabilities upon repeal of ordinance
Sec. 20. If the ordinance that established an economicimprovement district is repealed, the assets and liabilities of theeconomic improvement district shall be disposed of in the mannerdetermined by the unit. However, liabilities incurred by the economicimprovement district are not an obligation of the unit and are payableonly from the special assessments and other revenues of the district.
As added by P.L.195-1988, SEC.1.
IC 36-7-22-21
Annual report
Sec. 21. The board shall submit an annual report to the legislativebody and the fiscal body before February 15 of each year. The reportmust summarize the board's activities and expenditures during thepreceding calendar year.
As added by P.L.195-1988, SEC.1.
IC 36-7-22-22
Powers of the board to finance economic improvement projects
Sec. 22. The board may:
(1) exercise of any of the powers of a unit under IC 36-7-12-18or IC 36-7-12-18.5; or
(2) issue revenue bonds;
to finance an economic improvement project.
As added by P.L.131-2008, SEC.56.